Standardised Approach: Difference between revisions
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*[[Internal Models Approach]] | *[[Internal Models Approach]] | ||
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* [[Risk | * [[Risk Weighted Assets]] | ||
Revision as of 14:02, 10 November 2016
Bank supervision - capital adequacy - operational risk.
(SA or TSA).
The Standardised Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.
Under the standardised approach, gross income (GI) is multiplied by a coefficient (beta) to calculate the measure of risk weighted assets.
For example:
GI x beta = RWAs
£10m x 12% = £1.2m
The beta varies, according to the business line.
